Yahoo Finance Lam Research (LRCX) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Lam Research (LRCX) closed at $640.77, marking a +1.05% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.47%.
Coming into today, shares of the semiconductor equipment maker had gained 13.7% in the past month. In that same time, the Computer and Technology sector gained 2.06%, while the S&P 500 lost 0.12%.
LRCX will be looking to display strength as it nears its next earnings release. In that report, analysts expect LRCX to post earnings of $7.53 per share. This would mark year-over-year growth of 57.53%. Meanwhile, our latest consensus estimate is calling for revenue of $4 billion, up 43.45% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.71 per share and revenue of $14.49 billion. These totals would mark changes of +67.46% and +44.23%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for LRCX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. LRCX is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, LRCX is currently trading at a Forward P/E ratio of 23.74. This valuation marks a premium compared to its industry's average Forward P/E of 22.19.
Meanwhile, LRCX's PEG ratio is currently 0.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LRCX's industry had an average PEG ratio of 1.15 as of yesterday's close.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 9, which puts it in the top 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow LRCX in the coming trading sessions, be sure to utilize Zacks.com.
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Lam Research Corporation (LRCX) : Free Stock Analysis Report
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